The future of British life sciences firm Instem is in the balance ahead of a crunch vote today on a £203million buyout.
The Staffordshire company, which was founded in 1969 and provides software used in drug development, has backed an 883p per share takeover offer from French private equity firm Archimed.
But it needs approval of investors holding 75 per cent of the stock for it to go through, with today’s ballot on a knife edge.
Major shareholders opposed the plan, saying it undervalues the Aim-listed company.
And shares are well below the offer price, at 760p, suggesting the deal is in doubt.
Target: Instem, which was founded in 1969 and provides software used in drug development, has backed an 883p per share takeover offer from French private equity firm Archimed
Liontrust, the largest shareholder with a 11.95 per cent stake, and BGF Investment Management, with 8.53 per cent, intend to vote against the deal.
Slater Investments, which holds a 3.75 per cent share, has also come out against the takeover offer.
That means shareholders with 24.23 per cent of the stock have opposed the deal – just short of the 25 per cent required to block it.
‘Instem is an example of where the team feel strongly that the takeover price offered does not reflect the long-term value of the business,’ Liontrust said in September.
Instem has said it had the backing of 73.7 per cent of shareholders – just shy of the 75 per cent threshold.
If the deal goes ahead chairman David Gare, with a 5.7 per cent stake, stands to make £11.4million.
Chief executive Philip Reason would make £6.8million.
It comes as concerns grow about UK life sciences firms becoming buyout targets. The founder of Cambridge group Abcam is trying to thwart a £4.7billion US buyout.
